Second Injury Fund

Employer Assessment

The Second Injury Fund operations are financed by assessments on
all Connecticut employers. The State Treasurer, as Custodian of
the Fund, establishes the assessment rate on or before May 1st of
each year.

Insured employers pay a surcharge on their
workers' compensation insurance policies based on "direct written
premiums" calculated and issued by insurance companies who collect
and remit this assessment to the Fund. The assessment for
self-insured employers is based on "paid losses" for medical and
indemnity benefits incurred in the prior calendar year.

There were 4 assessments made in Fiscal Year 2018 on insured
employers totaling $29.9 million. Self-insured employers were
assessed 4 times during Fiscal Year 2018 totaling $5.7 million for
a combined assessment on all Connecticut employers of $35.6
million for Fiscal Year 2018.

Assessment rates, which are
used to determine how much Connecticut businesses will pay to the
Fund, have either remained the same or been reduced over the past
twenty years.

For insurers, the assessment rate for fiscal
year 2019 will decrease from 2.75% to 2.25%. Concurrently, the
rate for self-insured employers will decrease from 3.25% to 2.75%.
The rate is %1.73 for assigned risk policies.

Stricter oversight allowed a reduction of
rates charged to Connecticut businesses for assessments paid to
the Treasury's Second Injury Fund. The cumulative effect of all
the rate reductions since 1999 is a net savings of $1.3 billion
for Connecticut businesses, which includes $102 million in
projected savings during Fiscal Year 2019. This reflects a total
reduction of 78% in rates assessed for insurance companies and 81%
for self-insured companies.